no capital protection (investors in the certificate are exposed to the same risk investors in the underlying asset are). In addition, there may be exchange rate risk if the underlying asset’s currency of denomination is not the Euro and the certificate lacks any protection against currency risk

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Investment certificates are financial products characterized by a number of features. They may simply replicate the underlying asset’s upward movements or downward movements, or they may be structured so as to implement more sophisticated strategies, which may include total or conditional capital protection against bad performances of the underlying asset (protection component).Some certificates’ characteristics may also allow the owners to obtain proceeds during the life of the certificate, under condition that specific events take place (income component). A premium may be paid at maturity under form of additional proceeds in case the underlying asset’s price does not drop under the barrier (this is the case, for example, of bonus certificates). The return on investment in some typologies of certificates may be determined by both the changes in the underlying asset’s price and the absence of such price movements for a timespan shorter than the life of the contract (early reimbursement component). These certificates pay a sort of premium for early redemption in case the underlying asset’s price is above a certain level on pre-arranged dates.Moreover, some certificates feature an additional element, useful in periods of strong fluctuations of exchange rates – a protection against unfavourable changes in currency value. Products offering such protection, called “Quantum”, make it possible to invest in underlying asset’s denominated in a foreign currency avoiding exposure to the risks linked to exchange rates.

Features

The certificates’ payoff characteristics imply the following components: participation to upward movements in the underlying asset’s price.

Performance drivers

Reactivity of the certificates’ prices to changes in key variables.

Variables

Issue

Barrier**

Life residual***

Underlying asset's price

Volatility

Time*

Intereset rates

Dividends

* With "Time" we mean the "passing of time", so the the approaching of natural certificate's expiration date.

** The barrier is not present for this type of certificate

***2 months of life residual, underlying's price near to the strike and dividends payment are not expected

Worst Of

Commercial namesDiscount

Characteristics:

Replication of underlying asset's performance up to a cap level;

Chance to profit even from bear markets;

Underlying asset consisting in a basket of securities among which the worst-performing one determines the overall performance of che certificate

Return profiles

Maturity

2 - 4 years

Investment horizon

short/mid term

Aim

to profit from positive performances of the underlying asset

Strategy

moderately bullish (at issues and durng the life of the product)

Capital protection at maturity/Risk

no capital protection (investors in the certificate are exposed to the same risk investors in the underlying asset are). In addition, there may be exchange rate risk if the underlying asset’s currency of denomination is not the Euro and the certificate lacks any protection against currency risk

Learn more

Investment certificates are financial products characterized by a number of features. They may simply replicate the underlying asset’s upward movements or downward movements, or they may be structured so as to implement more sophisticated strategies, which may include total or conditional capital protection against bad performances of the underlying asset (protection component).Some certificates’ characteristics may also allow the owners to obtain proceeds during the life of the certificate, under condition that specific events take place (income component). A premium may be paid at maturity under form of additional proceeds in case the underlying asset’s price does not drop under the barrier (this is the case, for example, of bonus certificates). The return on investment in some typologies of certificates may be determined by both the changes in the underlying asset’s price and the absence of such price movements for a timespan shorter than the life of the contract (early reimbursement component). These certificates pay a sort of premium for early redemption in case the underlying asset’s price is above a certain level on pre-arranged dates.Moreover, some certificates feature an additional element, useful in periods of strong fluctuations of exchange rates – a protection against unfavourable changes in currency value. Products offering such protection, called “Quantum”, make it possible to invest in underlying asset’s denominated in a foreign currency avoiding exposure to the risks linked to exchange rates.

Features

The certificates’ payoff characteristics imply the following components: participation to upward movements in the underlying asset’s price.

Performance drivers

Reactivity of the certificates’ prices to changes in key variables.

Variables

Issue

Barrier**

Life residual***

Underlying asset's price

Volatility

Time*

Interest rates

Dividendis

* With "Time" we mean the "passing of time", so the the approaching of natural certificate's expiration date.

** The barrier is not present for this type of certificate

***2 months of life residual, underlying's price near to the strike and dividends payment are not expected